Articles, Tech Tips, Case Studies

Travel & Expense Testing Quickly Identifies Fraudulent Activity

15 Automated Tests Identify Multiple Offenders

Client:

A global leader with nearly 4,000 employees delivering workforce management solutions in the cloud. The company has tens of thousands of customers in more than 100 countries, including more than half of the Fortune 1000®, control labor costs, minimize compliance risk and improve workforce productivity.

Challenge:

Company executives needed assurance that employees were following corporate travel and entertainment (T&E) protocols. T&E tests were reviewed individually using multiple tests, or a subset, however the process was manual and time consuming. Auditors wanted an automated process to perform multiple tests, and export results into a central database where suspicious transactions could be reviewed and investigated.

Solution:

Audimation Services was engaged to automate the practice of importing and processing data from the expense reimbursement system, including travel expenses such as airfare, hotels, car rentals, and corporate credit card charges. The audit team provided guidance on the analytical steps and desired tests, and designated which fields should be included. Audimation’s Solution Development team also made sure the solution was flexible enough to add additional tests for future expansion of testing.

Results:

The custom IDEAScript scored and summarized results from 15 different tests, including mileage, cash transactions, missing receipts and above-average spending. Once implemented, testing helped identify multiple offenders who were prosecuted for fraud. Policy changes and new internal controls were implemented to prevent future infractions. The automated process also provided the efficiency and effectiveness of the T&E testing and review process.